New HHS Medicaid and CHIP Demonstration Helps Expand Healthcare Access for Ex-Prisoners

In a major move towards expanding healthcare access, the Department of Health and Human Services (HHS) has authorized five states – Illinois, Kentucky, Oregon, Utah, and Vermont – to provide coverage for individuals transitioning out of incarceration. This includes continuing Medicaid and Children’s Health Insurance Programs (CHIP) coverage for incarcerated individuals.

Through the Centers for Medicare and Medicaid Services (CMS), HHS has approved these Medicaid and CHIP demonstrations to ensure that individuals transitioning out of incarceration receive healthcare coverage before their release. Historically, this process has been challenging due to various barriers that prevent timely access to Medicaid or CHIP coverage.

HHS Secretary Xavier Becerra highlighted the importance of this initiative in advancing health equity and supporting successful transitions back into the community for individuals involved in the justice system. White House Office of National Drug Control Policy (ONDCP) Director Dr. Rahul Gupta also emphasized the critical role of expanding access to treatment and recovery supports for incarcerated individuals in addressing the overdose epidemic.

By increasing coverage and access to services prior to release, incarcerated individuals will be better equipped to continue treatment and receive interventions for behavioral health conditions upon returning to the community. The Medicaid Reentry Section 1115 Demonstration Opportunity allows states to cover specific services not typically included in Medicaid and CHIP up to 90 days before an individual’s expected release from incarceration.

CMS is collaborating with other states to explore additional Medicaid Reentry Section 1115 demonstration requests as part of ongoing efforts to enhance healthcare support for individuals transitioning out of incarceration.